What is the Law of Division in marketing? Why is expanding your brand to new categories dangerous for your company? The Law of Division states that if a market leader wants to enter an emerging category, it needs a new brand name for that category. The Law of Extension expands on that message and says that the credibility you build in one market doesn’t necessarily transfer to other product categories. Therefore, it’s risky to try to expand an existing brand into a new category. Keep reading for more on the Law of Division and the Law of Line Extension.
The Law of Division and the Dangers of Line Extension
